Personal Finance Tips in The Wake of COVID-19
We can all definitely agree that what the UK is dealing with is entirely unprecedented. We are now over halfway through 2020, and it isn't easy to imagine what life is going to be like once the country returns back to normal.
The majority of the population has had to come to terms with social isolation, social distancing and a range of other restrictions, so it's only been natural to feel nervous about what lies ahead. However, the UK government has put measures in place to help individuals cope financially during these challenging times.
But, many people haven't been eligible to receive such help, which is why they have been seeking other routes of financial help to assist them as the UK starts getting back to normal and going back to work. For example, guarantor loans have been a useful option for those who have built up a bad credit score during the pandemic.
However, if you are still finding that you are struggling to manage your personal finances are the UK navigates itself out of COVID-19, then here are some of our top tips.
Reassess Your Financial Requirements
You may be on a reduced income at the moment, especially if your employer has placed you on furlough. But, there will also be reductions in your expenditure too. Clearly, spending money on nights out and entertainment hasn't been an option over the past 4 months and what we can all spend our money on has greatly reduced in general.
But, now there will be many tempting promotions as shops try to sell excess stock that has built up as a result of the pandemic. So, make sure you think twice about what you can afford before splashing out and spending your money.
Set Yourself a Budget
If you are spending more money than what you have coming in, then you must work out where you can make some cutbacks. This can be as easy as cancelling a gym membership you don't use or making your lunch at home every day instead of buying meal deals.
You could also start keeping a spending diary so you can keep track of what you spend each month. An alternative to this would be starting a Monzo or Starling account. These mobile banking apps provide overviews of your spending each month so you can visually see where you've spent your money and what on.
Keep Your Children Entertained For Less
This one is a little bit more difficult, but it's a good idea to not get lured into buying expensive gaming consoles for your children if they still haven't gone back to school. Shop around on popular websites and social media instead and look for pre-used items instead. You'll probably find that you can find cheaper alternatives on eBay or Gumtree instead.
Beware of Online Scams
So far, we have seen the UK come together in a way that hasn't been seen since World War 2. However, (and sadly), there is always going to be fraudsters that are ready to take advantage of the vulnerable. Because of this, it's extremely important to stay vigilant when it comes to managing your finances online or through a mobile app.
Never give your bank account details to an unknown caller either, even if they claim to be calling from your bank. But, most importantly, never allow remote access to your computer; more and more scammers are trying to get control of people's data so they can steal their money.
Get Financial Advice As Soon As Possible if You Need It
Many businesses across the UK introduced an extension of breathing space for those who are in debt. But, you might not actually need to take such steps.
Instead, you may just need some financial advice on making the most of your money, or assistance with the way you budget each month. At this rather uncertain time, it's now more important than ever to take early advice to protect yourself and your family so that you can make the right financial decisions based on professional advice.